Aave paused new deposits and borrows on all DAO-operated V3 and V4 markets late Oct. 29 as a precaution after the Binance exploit, while withdrawals and repayments stayed open and contracts were unaffected, per Aave.

Aave paused new deposits and borrows on all DAO-operated V3 and V4 markets late Oct. 29 as a precaution after the Binance exploit, while withdrawals and repayments stayed open and contracts were unaffected, per Aave.

About 40 minutes before the freeze, a wallet linked to the Binance exploiter deposited about 60M USDT into Aave V3 Ethereum Core and borrowed 19,762 WETH worth roughly $44.6M between 20:58 and 21:01 UTC, per WuBlockchain.

The trick was swapping freezable USDT left as collateral for WETH that cannot be frozen, after Tether started freezing the hacker's USDT, effectively accepting about a $16M haircut, per FabianoSolana.

Guardian multisigs then signed freezes between 21:42 and 23:04 UTC covering 175 V3 reserves across 16 networks and 117 V4 reserves across four networks, per WuBlockchain.

Aave says the position remains overcollateralized and subject to normal liquidation rules, and it aims to unfreeze as soon as possible, per Aave. The $1.5B figure circulating is misinformation, the deposit was $60M, as the Turkish post also corrects.